Full House Resorts, Inc. (Nasdaq: FLL) today announced results for
the fourth quarter ended December 31, 2020.
On a consolidated basis, revenues in the fourth quarter of 2020
were $38.3 million, versus $39.0 million in the
prior-year period. Net income for the fourth quarter of 2020 rose
to $3.5 million, or $0.12 per diluted common share, from a net
loss of $4.1 million, or $(0.15) per diluted common share, in
the prior-year period. Net income in both periods was affected by
the accounting for the fair market value of outstanding warrants,
which the Company repurchased in February 2021 for
$4.0 million. Adjusted EBITDA(a) in the 2020 fourth quarter
was $9.8 million, versus $2.3 million in the fourth
quarter of 2019. This strong growth primarily reflects new
marketing programs and staffing improvements enacted in late 2019
and early 2020 at the Company’s properties. Results for the fourth
quarter of 2020 also include $0.6 million of revenue related
to a full quarter of operations for two of the Company’s six
permitted sports wagering websites and approximately one week of
operations from a third sports wagering website. The Company
expects the other three websites to begin operations shortly.
For the full year, total revenues declined to
$125.6 million in 2020 from $165.4 million in the prior
year, reflecting approximately three months of pandemic-related
closures for all of the Company’s properties last spring. Net
income for 2020 was $0.1 million, or $0.01 per diluted common
share, compared to a net loss of $5.8 million, or $(0.22) per
diluted common share, in the prior year. Despite several months of
closure, Adjusted EBITDA in 2020 rose 23.3% to $19.7 million
from $15.9 million in 2019, reflecting operational and
marketing improvements that bore results in the second half of
2020.
“Much like our third quarter, we had a phenomenal fourth
quarter,” said Daniel R. Lee, President and Chief Executive Officer
of Full House Resorts. “The fourth quarter tends to be seasonally
weaker than the third quarter, but our properties continued to
perform extremely well adjusted for the seasonality. Adjusted
EBITDA for the second half of 2020 was more than the total for all
of 2019. We now have approximately eight months of successful
‘reset operations’ behind us. While capacity restrictions remain,
as well as some additional costs related to the pandemic, so do the
structural changes that we have made regarding our marketing and
the ways we operate. We continue to believe that these results of
the past several months are sustainable.”
Continued Mr. Lee, “Many of the changes to our business
operations were in the implementation process prior to the
pandemic. For example, at both Bronco Billy’s and Rising Star, we
replaced antiquated slot marketing systems late in 2019. With the
improved systems, we are now able to provide a better customer
experience, while the improved analytics of those systems have
allowed us to eliminate unprofitable marketing offerings that cost
us more than the incremental revenue they created.
“Physical improvements that we made in recent years have also
helped our results. We refurbished the casino and buffet at the
Silver Slipper, for example, in 2019. We built a new restaurant at
Rising Star, also in 2019, which now supplants the unprofitable
buffet we had been operating. The ferry boat service we implemented
at Rising Star in 2018 has now become a contributor to our results
when one considers the same-day gaming activity of ferry boat
passengers, which we can track with the new system.
“Our sports ‘skins’ also continue to go live. In late 2020, an
affiliate of Wynn Resorts launched its sports offering through one
of our licenses in Colorado. As of today, two of our three
permitted skins are live in Colorado and one of our three permitted
skins is live in Indiana. We receive a percentage of defined
revenues of each skin, subject to annual minimums. Combined, these
three sports wagering websites represent a minimum of
$3.5 million of annualized contractual revenue. We continue to
expect our three remaining skins to go live shortly. When all six
skins are in operation, we should receive a contractual minimum of
$7 million per year of sports gaming revenues. Since we incur
very little expense related to these operations, almost all of such
revenues should result in income.”
Commented Lewis Fanger, Chief Financial Officer of Full House
Resorts, “We made significant strides with our balance sheet in
recent weeks. In February 2021, we issued $310 million of
new 8.25% senior secured notes, marking our debut with the
high-yield debt markets. That debt issuance was important for
several reasons. First, it replaced our existing floating rate
notes with new fixed rate debt, at largely the same interest rate.
Our new notes no longer have a quarterly leverage test that we must
meet, thereby eliminating the quarterly waiver fees that we were
previously incurring after several months of shutdown operations.
Second, we used bond proceeds to redeem all of our outstanding
warrants totaling approximately one million shares. Using our
closing stock price on February 12, the day we completed the
warrant redemption, the net repurchase price would have been more
than $6.0 million. Our actual repurchase price to redeem the
warrants was $4.0 million, a 34% discount to such amount. Most
importantly, our new debt issuance included $180 million of
proceeds dedicated to the construction of our Cripple Creek
project, enabling us to now build that luxury casino hotel all at
once, rather than in phases.”
Concluded Mr. Lee, “Prior to completing the funding of our
Cripple Creek project, we expanded the project’s size. In November,
Colorado voters eliminated betting limits and permitted new table
games, which significantly enhanced the already-favorable
feasibility of the project. To address this larger opportunity, we
increased the size of our Cripple Creek hotel by 67% to 300 guest
rooms, leaving other aspects of the project largely unchanged. For
various reasons, this required the approval of the Cripple Creek
City Council and the city’s Historic Preservation Commission, which
we received in January and February. The total remaining investment
to complete our Cripple Creek project is approximately
$180 million, which was fully funded through our recent debt
offering. We believe that our project will be transformational for
Cripple Creek. It is not an expansion of our existing Bronco
Billy’s casino; it is an entirely new casino hotel, with its own
unique name and personality, that happens to be located adjacent
to, and behind, Bronco Billy’s. We look forward to disclosing that
name and personality at a future date. With funding complete, we
recently restarted construction of the project and plan to welcome
guests to our new casino hotel beginning in the fourth quarter of
2022. Bronco Billy’s will remain open during construction and
points earned in the Bronco Billy’s loyalty program will be
redeemable at the new property, which will be connected to Bronco
Billy’s.”
Fourth Quarter and Full-Year 2020 Highlights and
Subsequent Events
- Revenues at Silver Slipper Casino and Hotel in the fourth
quarter of 2020 increased 8.1% to $18.3 million from
$17.0 million in the prior-year period. Silver Slipper’s
operating results improved despite continuing capacity limitations
throughout the property’s casino and dining outlets. Adjusted
Property EBITDA grew to $5.1 million in the 2020 fourth
quarter, an 89.6% increase from $2.7 million in the prior-year
period. For the full year, Silver Slipper’s operational performance
reflects a focus on marketing and labor improvements, as well as
the benefit of numerous investments in the property in recent
years. Such investments included a substantial renovation of the
casino and the buffet, a renovated porte cochere and other
sense-of-arrival improvements, the Beach Club, the Oyster Bar, and
the introduction of on-site sports betting. Revenues were
$62.5 million in 2020, reflecting its pandemic-related closure
for more than two months in early 2020, compared to
$73.2 million in 2019. Adjusted Property EBITDA rose to
$14.7 million in 2020, an 11.5% increase from
$13.2 million in 2019, despite being closed for more than two
months in Spring 2020.
- At Rising Star Casino Resort, revenues declined for the fourth
quarter of 2020 to $10.8 million from $11.4 million. This
decline reflects pandemic-related limitations on operations and an
increase in competition, as a casino near Louisville replaced its
original casino boat with a large new casino in December 2019.
Additionally, in January 2020, racetrack casinos near
Indianapolis began offering live table games. Adjusted Property
EBITDA was $3.5 million in the fourth quarter of 2020, a
significant increase from $0.2 million in the prior-year
period. These strong results reflect the positive impact of a new
slot marketing system installed in the fourth quarter of 2019, the
launch of an improved loyalty program in June 2020, labor
efficiencies from more appropriately matching the operating hours
of table games and food and beverage outlets to the demand for such
services, a full quarter of operations of one of the Company’s
three permitted sports betting “skins” in Indiana, and additional
sales of “free play” that the state’s casinos are permitted to
transfer to other casino operators within Indiana. Because Indiana
has a progressive gaming tax system and Rising Star is one of the
smaller casinos in the state, the property has consistently sold
its ability to deduct “free play” in computing gaming taxes to
operators in higher tax tiers, as it is permitted to do under state
law. Such sales resulted in $2.1 million and $1.0 million
of revenue in the fourth quarters of 2020 and 2019,
respectively.For the full year, revenues and Adjusted Property
EBITDA at Rising Star were $31.0 million and
$3.8 million, respectively, in 2020, with both amounts
including $1.5 million from the sports revenue agreements and
reflecting approximately three months of closure in early 2020 due
to the pandemic. In 2019, such amounts were $45.6 million and
$1.3 million, respectively, including $0.1 million from
the sports revenue agreements.
- At Bronco Billy’s Casino and Hotel in Colorado, revenues
declined for the fourth quarter of 2020 to $5.7 million from
$6.1 million. The decline was due to state-mandated
restrictions on operations in response to the continuing pandemic,
including the temporary shutdown of all table games at the property
from Spring 2020 until late-February 2021 and a steep reduction in
the number of slot machines being operated. Revenues in the fourth
quarter of 2020 include $0.3 million from two of the Company’s
three permitted sports wagering websites in Colorado, which
launched in June 2020 and December 2020, respectively.
The remaining sports wagering website is expected to commence
operations shortly. Adjusted Property EBITDA rose to
$1.7 million in the fourth quarter of 2020 from a loss of
$0.1 million in the prior-year period. The increase in
Adjusted Property EBITDA was due to an improved customer experience
and analytics from Bronco Billy’s new slot marketing system, labor
controls (partially offset by certain labor expenses related to the
pandemic), and the launch of two sports “skins” in 2020. Results
also benefited from the closure of the small, free-standing
Christmas Casino, which operated from November 2018 to
September 2020. While the unique decor of the small casino
resulted in an increase in overall revenues, the increase was not
sufficient to offset the additional costs of operations.For the
full year, revenues and Adjusted Property EBITDA at Bronco Billy’s
were $20.3 million and $4.5 million, respectively, in
2020, with both amounts including $0.7 million from the sports
revenue agreements and reflecting approximately three months of
closure in early 2020 due to the pandemic. In 2019, such amounts
were $27.5 million and $3.0 million, respectively. None
of Bronco Billy’s sports agreements were active in 2019.
- In November 2020, Colorado voters approved favorable
changes to the state’s gaming laws, including the elimination of
betting limits and allowing Colorado casinos to offer new table
games, such as baccarat and pai gow poker. To reflect the new
opportunity created by those changes, the Company increased the
size of its planned Cripple Creek expansion by 67% to approximately
300 luxury guest rooms and suites, from its previously planned 180
guest rooms. Such plans were approved by the Cripple Creek Historic
Preservation Commission and Cripple Creek City Council in January
and February 2021. Other planned amenities for the new casino
hotel – including a new parking garage, meeting and entertainment
space, outdoor rooftop pool, spa, and fine-dining restaurant –
remain largely unchanged. The expected remaining investment to
complete the Cripple Creek expansion is $180 million, which
the Company financed through the issuance of new senior secured
notes, as further discussed below. With funding fully in place, the
Company no longer intends to complete the project in phases, but
rather all at once, with an expected opening in the fourth quarter
of 2022. In late-February 2021, the Company began relocating
some significant storm sewers and other underground utilities that
transit the project site, allowing construction of the foundations
to begin within the next few weeks. A live webcam of the
construction project is available at
www.BroncoBillysCasino.com.
- The Northern Nevada segment consists of the Grand Lodge and
Stockman’s casinos and is historically the smallest of the
Company’s segments. This segment of the Company’s operations has
been the most negatively affected by the COVID-19 pandemic.
Revenues were $3.4 million and $4.6 million for the
fourth quarters of 2020 and 2019, respectively. Adjusted Property
EBITDA was $0.4 million and $0.6 million, respectively.
For the full year, revenues were $11.7 million in 2020,
reflecting approximately three months of pandemic-related closures,
versus $19.1 million in 2019. Adjusted Property EBITDA was
$0.5 million in 2020 and $3.2 million in 2019.Grand Lodge
Casino is located within the Hyatt Regency Lake Tahoe luxury resort
in Incline Village, Nevada. Its customer base includes the local
community, as well as visitors to the Hyatt. The pandemic has
adversely affected visitation to the Hyatt, including visitation
for its meeting and convention business. The pandemic also affected
the capacity of nearby ski areas this winter. To ensure social
distancing, ski areas are currently required to operate their lifts
at substantially less than full capacity. Many ski areas have also
limited lift ticket sales to attempt to control the resultant lift
lines. This has affected visitation to the region, including to the
Hyatt and our casino.Stockman’s Casino is in Fallon, Nevada, home
to a large Naval Air Station, where Navy pilots and crews visit for
training. To protect the health of both its servicemembers and the
host community, the Navy has restricted much of its personnel from
leaving the base.
- On February 12, 2021, the Company closed on its
issuance of $310 million of new 8.25% senior secured notes due
2028 (the “2028 Notes”). The proceeds from the offering were used
to redeem all $106.8 million of the Company’s senior secured
notes due 2024 (the “2024 Notes”) and to redeem all outstanding
warrants totaling 1,006,568 shares. Additionally, the proceeds
will be used to fund the Company’s expansion project in Cripple
Creek, Colorado, to pay expenses related to the offer and sale of
the 2028 Notes, and for general corporate purposes.
- The Company continues to be one of three bidders for the
opportunity to build a new casino in Waukegan, Illinois, an area
midway between Chicago and Milwaukee with high population density
and no existing casino. The Company’s proposal involves
construction of a temporary casino, which would generate tax
revenues and jobs quickly. Profits from the temporary casino would
help fund a permanent casino on the same site, to be named
“American Place.” The site is owned by the City of Waukegan and
would be leased by the Company. In October 2020, the Company
signed a commitment letter with a multi-billion-dollar investment
management firm that has experience with casino construction
projects. The commitment letter anticipates fully funding the
project with non-recourse development capital. The Company would be
required to invest $25 million in the project as equity, will
own no less than 60% of the project, and will receive management
fees for operating the casino and related amenities. The commitment
letter is conditioned upon the Company being awarded the Waukegan
casino license by the Illinois Gaming Board and the investment
firm’s further due diligence review, among other items.
Liquidity and Capital ResourcesAs of
December 31, 2020, the Company had $37.7 million in
cash and cash equivalents, $106.8 million in outstanding
senior secured notes due 2024, and $5.6 million in outstanding
unsecured loans obtained under the CARES Act. As discussed above,
in February 2021, the Company issued $310 million of new
senior secured notes due 2028 and used a portion of the proceeds to
redeem all $106.8 million of its outstanding 2024 Notes. As of
February 28, 2021, the Company had approximately
$232 million of cash and equivalents (including
$180 million held in a construction reserve account).
Conference Call InformationThe Company will
host a conference call for investors today,
March 8, 2021, at 4:30 p.m. ET
(1:30 p.m. PT) to discuss its 2020 fourth quarter
results. Investors can access the live audio webcast from the
Company’s website at www.fullhouseresorts.com under the investor
relations section. The conference call can also be accessed by
dialing (866) 248-8441 or, for international callers, (323)
289-6576.
A replay of the conference call will be available shortly after
the conclusion of the call through March 22, 2021. To
access the replay, please visit www.fullhouseresorts.com. Investors
can also access the replay by dialing (844) 512-2921 or, for
international callers, (412) 317-6671 and using the passcode
6818562.
(a) Reconciliation of Non-GAAP Financial
MeasureThe Company utilizes Adjusted Property EBITDA, a
financial measure in accordance with generally accepted accounting
principles (“GAAP”), as the measure of segment profit in assessing
performance and allocating resources at the reportable segment
level. Adjusted Property EBITDA is defined as earnings before
interest and other non-operating income (expense), taxes,
depreciation and amortization, preopening expenses, impairment
charges, asset write-offs, recoveries, gain (loss) from asset
disposals, project development and acquisition costs, non-cash
share-based compensation expense, and corporate-related costs and
expenses that are not allocated to each property. The Company also
utilizes Adjusted EBITDA (a non-GAAP measure), which is defined as
Adjusted Property EBITDA net of corporate-related costs and
expenses.
Although Adjusted EBITDA is not a measure of performance or
liquidity calculated in accordance with GAAP, the Company believes
this non-GAAP financial measure provides meaningful supplemental
information regarding our performance and liquidity. The Company
utilizes this metric or measure internally to focus management on
year-over-year changes in core operating performance, which it
considers its ordinary, ongoing and customary operations and which
it believes is useful information to investors. Accordingly,
management excludes certain items when analyzing core operating
performance, such as the items mentioned above, that management
believes are not reflective of ordinary, ongoing and customary
operations.
A reconciliation of Adjusted EBITDA is presented below. However,
you should not consider this measure in isolation or as a
substitute for operating income, cash flows from operating
activities, or any other measure for determining our operating
performance or liquidity that is calculated in accordance with
GAAP. You are encouraged to evaluate these adjustments and the
reasons we consider them appropriate for supplemental analysis. In
evaluating Adjusted EBITDA, you should be aware that, in the
future, we may incur expenses that are the same as or similar to
some of the adjustments in this presentation. Our presentation of
Adjusted EBITDA should not be construed as an inference that our
future results will be unaffected by unusual or non-recurring
items.
FULL HOUSE RESORTS, INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)(In thousands, except per share
data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, |
|
December 31, |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Casino |
|
$ |
27,196 |
|
|
$ |
25,998 |
|
|
$ |
90,812 |
|
|
$ |
113,390 |
|
Food and beverage |
|
|
5,170 |
|
|
|
8,286 |
|
|
|
19,766 |
|
|
|
35,069 |
|
Hotel |
|
|
2,206 |
|
|
|
2,692 |
|
|
|
7,410 |
|
|
|
11,535 |
|
Other operations, including online/mobile sports |
|
|
3,697 |
|
|
|
2,040 |
|
|
|
7,601 |
|
|
|
5,438 |
|
|
|
|
38,269 |
|
|
|
39,016 |
|
|
|
125,589 |
|
|
|
165,432 |
|
Operating costs and
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Casino |
|
|
9,863 |
|
|
|
16,658 |
|
|
|
33,749 |
|
|
|
50,673 |
|
Food and beverage |
|
|
4,925 |
|
|
|
4,827 |
|
|
|
19,378 |
|
|
|
33,950 |
|
Hotel |
|
|
1,110 |
|
|
|
463 |
|
|
|
3,773 |
|
|
|
5,608 |
|
Other operations |
|
|
414 |
|
|
|
951 |
|
|
|
1,855 |
|
|
|
3,557 |
|
Selling, general and administrative |
|
|
12,253 |
|
|
|
13,881 |
|
|
|
47,585 |
|
|
|
56,052 |
|
Project development costs |
|
|
— |
|
|
|
534 |
|
|
|
423 |
|
|
|
1,037 |
|
Depreciation and amortization |
|
|
1,798 |
|
|
|
2,068 |
|
|
|
7,666 |
|
|
|
8,331 |
|
Loss on disposal of assets, net |
|
|
245 |
|
|
|
3 |
|
|
|
684 |
|
|
|
8 |
|
|
|
|
30,608 |
|
|
|
39,385 |
|
|
|
115,113 |
|
|
|
159,216 |
|
Operating income
(loss) |
|
|
7,661 |
|
|
|
(369 |
) |
|
|
10,476 |
|
|
|
6,216 |
|
Other expense,
net |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net of capitalized interest |
|
|
(2,494 |
) |
|
|
(2,666 |
) |
|
|
(9,823 |
) |
|
|
(10,728 |
) |
Adjustment to fair value of warrants |
|
|
(1,757 |
) |
|
|
(1,069 |
) |
|
|
(598 |
) |
|
|
(1,230 |
) |
|
|
|
(4,251 |
) |
|
|
(3,735 |
) |
|
|
(10,421 |
) |
|
|
(11,958 |
) |
Income (loss) before
income taxes |
|
|
3,410 |
|
|
|
(4,104 |
) |
|
|
55 |
|
|
|
(5,742 |
) |
Income tax (benefit)
expense |
|
|
(90 |
) |
|
|
29 |
|
|
|
(92 |
) |
|
|
80 |
|
Net income
(loss) |
|
$ |
3,500 |
|
|
$ |
(4,133 |
) |
|
$ |
147 |
|
|
$ |
(5,822 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share |
|
$ |
0.13 |
|
|
$ |
(0.15 |
) |
|
$ |
0.01 |
|
|
$ |
(0.22 |
) |
Diluted earnings
(loss) per share |
|
$ |
0.12 |
|
|
$ |
(0.15 |
) |
|
$ |
0.01 |
|
|
$ |
(0.22 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average number
of common shares outstanding |
|
|
27,114 |
|
|
|
27,029 |
|
|
|
27,094 |
|
|
|
26,980 |
|
Diluted weighted average
number of common shares outstanding |
|
|
28,428 |
|
|
|
27,029 |
|
|
|
27,784 |
|
|
|
26,980 |
|
Full House Resorts, Inc.Supplemental
InformationSegment Revenues and Adjusted Property
EBITDA(In Thousands, Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, |
|
December 31, |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Silver Slipper Casino and Hotel |
|
$ |
18,334 |
|
|
$ |
16,961 |
|
|
$ |
62,513 |
|
|
$ |
73,201 |
|
Rising Star Casino Resort(1) |
|
|
10,802 |
|
|
|
11,419 |
|
|
|
31,028 |
|
|
|
45,620 |
|
Bronco Billy’s Casino and Hotel(1) |
|
|
5,707 |
|
|
|
6,076 |
|
|
|
20,316 |
|
|
|
27,507 |
|
Northern Nevada Casinos |
|
|
3,426 |
|
|
|
4,560 |
|
|
|
11,732 |
|
|
|
19,104 |
|
|
|
$ |
38,269 |
|
|
$ |
39,016 |
|
|
$ |
125,589 |
|
|
$ |
165,432 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Property
EBITDA(2) and Adjusted
EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
Silver Slipper Casino and Hotel |
|
$ |
5,140 |
|
|
$ |
2,711 |
|
|
$ |
14,669 |
|
|
$ |
13,159 |
|
Rising Star Casino Resort(1) |
|
|
3,493 |
|
|
|
167 |
|
|
|
3,841 |
|
|
|
1,330 |
|
Bronco Billy’s Casino and Hotel(1) |
|
|
1,683 |
|
|
|
(74 |
) |
|
|
4,479 |
|
|
|
3,000 |
|
Northern Nevada Casinos |
|
|
376 |
|
|
|
645 |
|
|
|
454 |
|
|
|
3,161 |
|
Adjusted Property
EBITDA |
|
|
10,692 |
|
|
|
3,449 |
|
|
|
23,443 |
|
|
|
20,650 |
|
Corporate |
|
|
(890 |
) |
|
|
(1,128 |
) |
|
|
(3,789 |
) |
|
|
(4,710 |
) |
Adjusted
EBITDA |
|
$ |
9,802 |
|
|
$ |
2,321 |
|
|
$ |
19,654 |
|
|
$ |
15,940 |
|
(1) Includes amounts related to the property’s
contracted sports revenue in 2020.(2) The Company
utilizes Adjusted Property EBITDA as the measure of segment
operating profit in assessing performance and allocating resources
at the reportable segment level.
Full House Resorts, Inc.Supplemental
InformationReconciliation of Net Income (Loss) and
Operating Income (Loss) to Adjusted EBITDA(In
Thousands, Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, |
|
December 31, |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Net income (loss) |
|
$ |
3,500 |
|
|
$ |
(4,133 |
) |
|
$ |
147 |
|
|
$ |
(5,822 |
) |
Income tax (benefit) expense |
|
|
(90 |
) |
|
|
29 |
|
|
|
(92 |
) |
|
|
80 |
|
Interest expense, net of amounts capitalized |
|
|
2,494 |
|
|
|
2,666 |
|
|
|
9,823 |
|
|
|
10,728 |
|
Adjustment to fair value of warrants |
|
|
1,757 |
|
|
|
1,069 |
|
|
|
598 |
|
|
|
1,230 |
|
Operating income
(loss) |
|
|
7,661 |
|
|
|
(369 |
) |
|
|
10,476 |
|
|
|
6,216 |
|
Project development costs |
|
|
— |
|
|
|
534 |
|
|
|
423 |
|
|
|
1,037 |
|
Depreciation and amortization |
|
|
1,798 |
|
|
|
2,068 |
|
|
|
7,666 |
|
|
|
8,331 |
|
Loss on disposal of assets, net |
|
|
245 |
|
|
|
3 |
|
|
|
684 |
|
|
|
8 |
|
Stock-based compensation |
|
|
98 |
|
|
|
85 |
|
|
|
405 |
|
|
|
348 |
|
Adjusted
EBITDA |
|
$ |
9,802 |
|
|
$ |
2,321 |
|
|
$ |
19,654 |
|
|
$ |
15,940 |
|
Full House Resorts, Inc.Supplemental
InformationReconciliation of Operating Income
(Loss) to Adjusted Property EBITDA and Adjusted
EBITDA(In Thousands, Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended December 31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property |
|
|
Operating |
|
Depreciation |
|
Loss on |
|
Stock- |
|
EBITDA and |
|
|
Income |
|
and |
|
Disposal |
|
Based |
|
Adjusted |
|
|
(Loss) |
|
Amortization |
|
of Assets |
|
Compensation |
|
EBITDA |
Casino
properties |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silver Slipper Casino and Hotel |
|
$ |
4,239 |
|
|
$ |
657 |
|
$ |
244 |
|
$ |
— |
|
$ |
5,140 |
|
Rising Star Casino Resort(1) |
|
|
2,872 |
|
|
|
621 |
|
|
— |
|
|
— |
|
|
3,493 |
|
Bronco Billy’s Casino and Hotel(1) |
|
|
1,341 |
|
|
|
342 |
|
|
— |
|
|
— |
|
|
1,683 |
|
Northern Nevada Casinos |
|
|
236 |
|
|
|
140 |
|
|
— |
|
|
— |
|
|
376 |
|
|
|
|
8,688 |
|
|
|
1,760 |
|
|
244 |
|
|
— |
|
|
10,692 |
|
Other
operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
|
(1,027 |
) |
|
|
38 |
|
|
1 |
|
|
98 |
|
|
(890 |
) |
|
|
$ |
7,661 |
|
|
$ |
1,798 |
|
$ |
245 |
|
$ |
98 |
|
$ |
9,802 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended December 31, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property |
|
|
Operating |
|
Depreciation |
|
Loss on |
|
Project |
|
Stock- |
|
EBITDA and |
|
|
Income |
|
and |
|
Disposal |
|
Development |
|
Based |
|
Adjusted |
|
|
(Loss) |
|
Amortization |
|
of Assets |
|
Costs |
|
Compensation |
|
EBITDA |
Casino
properties |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silver Slipper Casino and Hotel |
|
$ |
1,856 |
|
|
$ |
855 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
2,711 |
|
Rising Star Casino Resort |
|
|
(459 |
) |
|
|
626 |
|
|
— |
|
|
— |
|
|
— |
|
|
167 |
|
Bronco Billy’s Casino and Hotel |
|
|
(473 |
) |
|
|
396 |
|
|
3 |
|
|
— |
|
|
— |
|
|
(74 |
) |
Northern Nevada Casinos |
|
|
492 |
|
|
|
153 |
|
|
— |
|
|
— |
|
|
— |
|
|
645 |
|
|
|
|
1,416 |
|
|
|
2,030 |
|
|
3 |
|
|
— |
|
|
— |
|
|
3,449 |
|
Other
operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
|
(1,785 |
) |
|
|
38 |
|
|
— |
|
|
534 |
|
|
85 |
|
|
(1,128 |
) |
|
|
$ |
(369 |
) |
|
$ |
2,068 |
|
$ |
3 |
|
$ |
534 |
|
$ |
85 |
|
$ |
2,321 |
|
(1) Includes amounts related to the property’s
contracted sports revenue.Full House Resorts,
Inc.Supplemental
InformationReconciliation of Operating Income
(Loss) to Adjusted Property EBITDA and Adjusted
EBITDA(In Thousands, Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
Ended December 31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property |
|
|
Operating |
|
Depreciation |
|
Loss on |
|
Project |
|
Stock- |
|
EBITDA and |
|
|
Income |
|
and |
|
Disposal |
|
Development |
|
Based |
|
Adjusted |
|
|
(Loss) |
|
Amortization |
|
of Assets |
|
Costs |
|
Compensation |
|
EBITDA |
Casino
properties |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silver Slipper Casino and Hotel |
|
$ |
11,421 |
|
|
$ |
3,004 |
|
$ |
244 |
|
$ |
— |
|
$ |
— |
|
$ |
14,669 |
|
Rising Star Casino Resort(1) |
|
|
1,363 |
|
|
|
2,478 |
|
|
— |
|
|
— |
|
|
— |
|
|
3,841 |
|
Bronco Billy’s Casino and Hotel(1) |
|
|
3,025 |
|
|
|
1,450 |
|
|
4 |
|
|
— |
|
|
— |
|
|
4,479 |
|
Northern Nevada Casinos |
|
|
(562 |
) |
|
|
581 |
|
|
435 |
|
|
— |
|
|
— |
|
|
454 |
|
|
|
|
15,247 |
|
|
|
7,513 |
|
|
683 |
|
|
— |
|
|
— |
|
|
23,443 |
|
Other
operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
|
(4,771 |
) |
|
|
153 |
|
|
1 |
|
|
423 |
|
|
405 |
|
|
(3,789 |
) |
|
|
$ |
10,476 |
|
|
$ |
7,666 |
|
$ |
684 |
|
$ |
423 |
|
$ |
405 |
|
$ |
19,654 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
Ended December 31, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property |
|
|
Operating |
|
Depreciation |
|
Loss on |
|
Project |
|
Stock- |
|
EBITDA and |
|
|
Income |
|
and |
|
Disposal |
|
Development |
|
Based |
|
Adjusted |
|
|
(Loss) |
|
Amortization |
|
of Assets |
|
Costs |
|
Compensation |
|
EBITDA |
Casino
properties |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silver Slipper Casino and Hotel |
|
$ |
9,700 |
|
|
$ |
3,454 |
|
$ |
5 |
|
$ |
— |
|
$ |
— |
|
$ |
13,159 |
|
Rising Star Casino Resort |
|
|
(1,096 |
) |
|
|
2,426 |
|
|
— |
|
|
— |
|
|
— |
|
|
1,330 |
|
Bronco Billy’s Casino and Hotel |
|
|
1,297 |
|
|
|
1,700 |
|
|
3 |
|
|
— |
|
|
— |
|
|
3,000 |
|
Northern Nevada Casinos |
|
|
2,562 |
|
|
|
599 |
|
|
— |
|
|
— |
|
|
— |
|
|
3,161 |
|
|
|
|
12,463 |
|
|
|
8,179 |
|
|
8 |
|
|
— |
|
|
— |
|
|
20,650 |
|
Other
operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
|
(6,247 |
) |
|
|
152 |
|
|
— |
|
|
1,037 |
|
|
348 |
|
|
(4,710 |
) |
|
|
$ |
6,216 |
|
|
$ |
8,331 |
|
$ |
8 |
|
$ |
1,037 |
|
$ |
348 |
|
$ |
15,940 |
|
(1) Includes amounts related to the property’s
contracted sports revenue.
Cautionary Note Regarding Forward-looking
StatementsThis press release contains statements by Full
House and our officers that are “forward-looking statements” within
the meaning of the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995. Forward-looking
statements can be identified by words such as: “anticipate,”
“intend,” “plan,” “believe,” “project,” “expect,” “future,”
“should,” “will” and similar references to future periods. Some
forward-looking statements in this press release include those
regarding our expected results of operations; our anticipated use
of proceeds from the issuance of the 2028 Notes; our expected
construction budget, estimated completion date, and the opening
timeline for the Cripple Creek project; our expectations regarding
our sports revenue agreements with third-party providers, including
the expected revenues and expenses and the expected timing for the
launch of the sports betting ‘skins’ related thereto; and our
expectations regarding the Waukegan proposal, including our ability
to obtain the casino license and, if we are awarded such license,
to obtain financing. Forward-looking statements are neither
historical facts nor assurances of future performance. Because
forward-looking statements relate to the future, they are subject
to inherent uncertainties, risks and changes in circumstances that
are difficult to predict and many of which are outside of the
control of Full House. Such risks include, without limitation, our
ability to repay our substantial indebtedness; the potential for
additional adverse impacts from the COVID-19 pandemic on our
business, construction projects, indebtedness, financial condition
and operating results; actions by government officials at the
federal, state or local level with respect to steps to be taken,
including, without limitation, additional shutdowns, travel
restrictions, social distancing measures or shelter-in-place
orders, in connection with the COVID-19 pandemic; our ability to
effectively manage and control expenses as a result of the
pandemic; our ability to complete the planned Cripple Creek
expansion project on-time and on-budget; changes in guest
visitation or spending patterns due to COVID-19 or other health or
other concerns; a decrease in overall demand as other competing
entertainment venues continue to re-open; construction risks,
disputes and cost overruns; dependence on existing management;
competition; uncertainties over the development and success of our
expansion projects; the financial performance of our finished
projects and renovations; effectiveness of expense and operating
efficiencies; general macroeconomic conditions; and regulatory and
business conditions in the gaming industry (including the possible
authorization or expansion of gaming in the states we operate or
nearby states). Additional information concerning potential factors
that could affect our financial condition and results of operations
is included in the reports Full House files with the Securities and
Exchange Commission, including, but not limited to, Part I,
Item 1A. Risk Factors and Part II, Item 7. Management’s
Discussion and Analysis of Financial Condition and Results of
Operations of our Annual Report on Form 10-K for the most recently
ended fiscal year and our other periodic reports filed with the
Securities and Exchange Commission. We are under no obligation to
(and expressly disclaim any such obligation to) update or revise
our forward-looking statements as a result of new information,
future events or otherwise. Actual results may differ materially
from those indicated in the forward-looking statements. Therefore,
you should not rely on any of these forward-looking statements.
About Full House Resorts, Inc.Full House
Resorts owns, leases, develops and operates gaming facilities
throughout the country. The Company’s properties include Silver
Slipper Casino and Hotel in Hancock County, Mississippi; Bronco
Billy’s Casino and Hotel in Cripple Creek, Colorado; Rising Star
Casino Resort in Rising Sun, Indiana; and Stockman’s Casino in
Fallon, Nevada. The Company also operates the Grand Lodge Casino at
the Hyatt Regency Lake Tahoe Resort, Spa and Casino in Incline
Village, Nevada under a lease agreement with the Hyatt
organization. The Company is currently constructing a new luxury
hotel and casino in Cripple Creek, Colorado, adjacent to its
existing Bronco Billy’s property. Further information about Full
House Resorts can be viewed on its website at
www.fullhouseresorts.com.
Contact:
Lewis Fanger, Chief Financial Officer
Full House Resorts, Inc.
702-221-7800
www.fullhouseresorts.com
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